Why Progress Software Shares Progressed Higher
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Progress Software (NAS: PRGS) jumped today by as much as 16% after the company reported third quarter results.
So what: Revenue of $107.2 million fell short of the Street's target of over $112 million, but that shortfall was more than made up for by the bottom line beat. Adjusted earnings came out to be $0.31 per share, well ahead of the 0.24 per share profit that investors were hoping for.
Now what: Next quarter's guidance calls for revenue growth between negative 2% and positive 1% compared to last year on a constant currency basis. Operating margin should be between 25% and 30%. Progress Software continues to layoff some of its EMEA workforce in an effort to save costs. The company is looking to reduce expenses by $55 million, with some of these initiatives starting this quarter.
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The article Why Progress Software Shares Progressed Higher originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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